Sensex Struggles on Global Cues

Indian stock markets were sluggish on Friday amid lacklustre global cues. The Sensex was down 60 points while Nifty slipped to 7,817.

Some selling pressure was seen in banking and healthcare stocks.

Auto, consumer durable and real estate stocks were higher after the Seventh Pay Commission proposed an overall hike of 23.55 per cent. The recommendations, once cleared by the Cabinet, will lead to a substantial hike in salaries of central government employees and pensioners with effect from January 1, 2016.

Analysts say that consumption will get a boost after the implementation of the pay commission recommendations. Car sales had surged after implementation of the Sixth Pay Commission. The pay hike will cost the government over Rs 1 lakh crore in the first year and it is seen as a stimulus for the economy.

Among auto stocks, Maruti Suzuki , M&M and Hero MotoCorp edged higher while among consumer durable stocks Voltas, Videocon and Blue Star were firm. In the real estate pack, DLF, HDIL, Sobha were among the gainers.

Dr Reddy’s rebounded 2 per cent after falling 2.5 per cent yesterday. JSPL surged as much as 15 per cent after reports said that competition regular has given the company clean chit on cartelisation allegations.

Despite yesterday’s sharp gains analysts say that unless the selling from foreign institutional investors abates the upside scope remains limited for Indian markets in the near term. Analysts say that if Nifty holds the 7,700 mark, it could head towards 8,000.

Foreign institutional investors (FIIs) have been net sellers of over Rs 6,400 crore worth equities so far this month. The support has come from domestic institutional investors, who have bought equities worth Rs 4,800 crore in November.

Asian markets were mixed today, tracking a flat close on the Wall Street.

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Source:Ndtv

Sensex